Electricity Cost in California: 2025 Electric Rates
Living in California means sunshine, beaches, and now, very high electricity bills. In 2025, many people are worried about how much power costs every month. For some, it is starting to feel like a second rent.
What Are California Electric Rates in June 2025
In June 2025, California electric rates are 32.41 ¢/kWh, among the highest in the United States. That means for every unit of electricity you use, you may pay more than double the national average.
Let’s break it down usingdata covered by FOX26NEWS:
● PG&E (Pacific Gas and Electric): One of the largest utilities in Northern California. Customers saw a 43% rise in rates over the last 3 years.
● Southern California Edison (SCE): Their residential rate increased 25% over the same period.
● San Diego Gas & Electric (SDG&E): Their rate went up by 5% in the past 3 years.
Over the past 10 years, the numbers are even more serious:
● PG&E: 104% higher
● SCE: 83% higher
● SDG&E: 71% higher
The California Public Advocates Office confirmed these numbers in a report released in May 2025. On the wholesale market, the real-time average price in early June was around 3.85 cents/kWh, but that does not reflect what most homes pay.
Why is the price so different from the rest of the U.S.? Because California residents are not just paying for electricity. They are also helping fund major programs and covering other costs, which we will explain next.
Why Are California Electric Rates So High
California has always had higher electric rates than the national average. But since 2015, the gap has grown fast. In 2015, the difference was about 30%. In 2024, it reached over80%.
Here are the main reasons:
Wildfire Costs and Insurance
Wildfires have caused billions in damages across the state. Power companies are now spending huge amounts of money to prevent fires. That includes cutting tree branches near power lines, replacing old wires, and upgrading poles. These safety steps cost a lot, and the money comes from customers. Insurance costs for utilities also grew sharply.
Upgrades to Power Lines and Equipment
Many power lines in California are old. Utility companies are investing in better equipment to make the system stronger and safer. These upgrades help reduce outages but are very expensive. All this new equipment must be paid for, and the cost is included in the rates.
Solar Power Programs
California supports solar energy. There are programs that pay people with rooftop solar panels when they send power back to the grid. This setup is called Net Energy Metering. But when solar customers pay less, power companies still need to cover fixed costs like lines and trucks. So, other customers end up paying more.
Support for Low-Income Households
California has programs to help low-income families pay for electricity. These discounts help those in need, but the lost money has to be recovered. That cost is added to bills from people who do not qualify for help.
Lower Use, Same Costs
People in California use about half as much power as the average person in the U.S. The weather is mild, and many homes are built for energy savings. But power companies still need to cover fixed costs. If fewer people use large amounts of electricity, the price per unit has to go up.
Profit Structure of Investor-Owned Utilities
Most major electric companies in California are investor-owned, like PG&E and SCE. These companies are allowed to earn a return on the money they spend on upgrades. The more they invest, the more they can earn. While this helps improve the grid, it also raises long-term costs.
Bills Are Catching Up with Rates
For many years, California’s lower usage kept electric bills reasonable. But now, high rates are growing faster than savings from low usage. Since 2015, monthly bills for homeowners have increased by about $21 beyond inflation, and for renters, by about $14 to $18. Lower-income families are affected the most.
Is It Possible to Reduce Your Electric Bills in California
Yes. Even though prices are high, there are still ways to lower your monthly bill.
Track Your Use
Start by checking how much electricity your home uses each month. Most utility websites let you see day-by-day or even hour-by-hour use. Knowing your pattern helps you find where to cut back.
Use Power During Cheaper Hours
Many California homes have Time-of-Use (TOU) rates. That means electricity is cheaper at certain times, usually late at night or early morning. Running your dishwasher or charging your EV during those hours can reduce your bill.
Switch to LED Bulbs and Smart Thermostats
Changing to energy-saving LED bulbs cuts lighting costs fast. A smart thermostat learns your habits and keeps heating or cooling efficient. These small changes help bring long-term savings.
Unplug Unused Devices
Some electronics still use power when off. These are called "phantom loads." Unplugging items like game consoles or printers when not in use stops this waste.
Apply for Assistance Programs
Even if you are not low-income, some rebate programs can help. The California Alternate Rates for Energy (CARE) program offers big discounts to eligible families. Look for other rebates for insulation, appliances, or solar panels on your local utility’s site.
Try Community Solar or Battery Storage
If rooftop solar is not an option, look into community solar. This allows renters or people in apartments to benefit from clean energy without installing panels. Some homes also reduce costs with battery storage, which stores cheap electricity for later use during expensive hours.
Join Budget Billing Plans
Some power companies offer monthly billing plans that spread out your costs evenly across the year. This helps avoid big spikes in summer or winter.
It's Time to Consider Solar Home Battery Storage in 2025
But if all of this feels like too much work, or the savings seem small compared to California’s rising rates, there is another way.
More and more homeowners are skipping the daily effort and going straight to energy independence with systems like EcoFlow OceanPro. This is a whole-home solar battery designed for people who want full control over their power, without the noise, fuel, or constant habit changes.
With up to 80 kWh of expandable storage and a 24 kW output, OceanPro can run everything from your air conditioning and kitchen to your laundry and EV charger—all at once. It charges during the day with solar panels, stores that energy, and gives it back when grid prices spike or blackouts hit.
Built with LFP (LiFePO₄) cells, it lasts for years, stays stable in extreme heat, and even works during floods with IP67 protection. It also includes smart energy tools powered by AI, so you can track usage, avoid waste, and even sell extra power back to the grid.
For homes in California facing high rates and frequent weather-related risks, EcoFlow OceanPro isn’t just a battery—it’s your quiet, clean, always-ready power partner. If you're looking for long-term savings and true energy freedom, it may be the smartest move of all.